Investing.com - U.S. stock futures opened mixed on Monday, as weaker-than-expected third quarter earnings results from global economic bellwether Caterpillar sapped investor demand for riskier assets.
In early U.S. trade, the Dow Jones Industrial Average was down 0.25%, the S&P 500 shed 0.25%, while the Nasdaq 100 added 0.1%.
U.S. equities suffered sharp losses on Friday, as weaker-than-expected third quarter earnings results from U.S. corporate giants General Electric, Microsoft and McDonald’s sapped investor demand for riskier assets.
That trend continued Monday, with Caterpillar shares dropping 1.5% after the company cut its full-year earnings outlook and revenue came in lighter than forecast.
The update reflects “global economic conditions that are weaker than we had previously expected,” the company said.
On the upside, shares in Peabody Energy surged 13% after the largest U.S. coal producer by volume reported higher-than-expected third quarter earnings. The company also affirmed its full-year earnings outlook.
Toymaker Hasbro saw shares climb 1.1% after third quarter revenue declined 2.2% to USD1.35 billion, but rose 1% absent the impact of foreign exchange.
Shares in tech giants Yahoo! and Texas Instruments were also in focus, as both were set to release earnings reports after Monday’s closing bell.
Elsewhere, in deal news, oil giant British Petroleum saw shares fall 0.85% after saying that it agreed to sell its 50% stake in Russian oil producer TNK-BP to state-run OAO Rosneft in a deal valued at nearly USD17.1 billion in cash plus 12.84% of Rosneft shares.
Across the Atlantic, European stock markets erased earlier gains to trade lower, as ongoing uncertainty surrounding Spain’s bailout plan and concerns over weakening corporate earnings weighed on appetite for riskier assets.
The EURO STOXX 50 fell 0.15%, France’s CAC 40 declined 0.25%, Germany's DAX slumped 0.45%, while Britain's FTSE 100 eased down 0.15%.
European equities were higher earlier in the day after the center-right Popular Party of Prime Minister Mariano Rajoy increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting financial aid from Spain’s euro zone partners.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation.
Prime Minister Rajoy said Friday he still had not decided whether to request a sovereign bailout.
The comments came at the end of a two-day European Union summit, which ended without any indication on when Spain will formally request a bailout or whether Greece will receive the next tranche of its bailout loan.
With no data due Monday, investors will an eye on U.S. politics. The third and final U.S. presidential debate takes place Monday evening before elections on November 6.
Markets may stay subdued ahead of the release later in the week of U.S. data including monthly new home sales, durable goods orders and third-quarter GDP figures.
Investors are also turning their attention to the Federal Reserve's policy meeting on Tuesday and Wednesday after the central bank announced its third round of quantitative easing last month.
In early U.S. trade, the Dow Jones Industrial Average was down 0.25%, the S&P 500 shed 0.25%, while the Nasdaq 100 added 0.1%.
U.S. equities suffered sharp losses on Friday, as weaker-than-expected third quarter earnings results from U.S. corporate giants General Electric, Microsoft and McDonald’s sapped investor demand for riskier assets.
That trend continued Monday, with Caterpillar shares dropping 1.5% after the company cut its full-year earnings outlook and revenue came in lighter than forecast.
The update reflects “global economic conditions that are weaker than we had previously expected,” the company said.
On the upside, shares in Peabody Energy surged 13% after the largest U.S. coal producer by volume reported higher-than-expected third quarter earnings. The company also affirmed its full-year earnings outlook.
Toymaker Hasbro saw shares climb 1.1% after third quarter revenue declined 2.2% to USD1.35 billion, but rose 1% absent the impact of foreign exchange.
Shares in tech giants Yahoo! and Texas Instruments were also in focus, as both were set to release earnings reports after Monday’s closing bell.
Elsewhere, in deal news, oil giant British Petroleum saw shares fall 0.85% after saying that it agreed to sell its 50% stake in Russian oil producer TNK-BP to state-run OAO Rosneft in a deal valued at nearly USD17.1 billion in cash plus 12.84% of Rosneft shares.
Across the Atlantic, European stock markets erased earlier gains to trade lower, as ongoing uncertainty surrounding Spain’s bailout plan and concerns over weakening corporate earnings weighed on appetite for riskier assets.
The EURO STOXX 50 fell 0.15%, France’s CAC 40 declined 0.25%, Germany's DAX slumped 0.45%, while Britain's FTSE 100 eased down 0.15%.
European equities were higher earlier in the day after the center-right Popular Party of Prime Minister Mariano Rajoy increased its majority in his home region of Galicia on Sunday, removing a possible obstacle to formally requesting financial aid from Spain’s euro zone partners.
A bailout would allow the European Central Bank to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation.
Prime Minister Rajoy said Friday he still had not decided whether to request a sovereign bailout.
The comments came at the end of a two-day European Union summit, which ended without any indication on when Spain will formally request a bailout or whether Greece will receive the next tranche of its bailout loan.
With no data due Monday, investors will an eye on U.S. politics. The third and final U.S. presidential debate takes place Monday evening before elections on November 6.
Markets may stay subdued ahead of the release later in the week of U.S. data including monthly new home sales, durable goods orders and third-quarter GDP figures.
Investors are also turning their attention to the Federal Reserve's policy meeting on Tuesday and Wednesday after the central bank announced its third round of quantitative easing last month.